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Stabilisation 'on the way'

The UK property market will see prices stabilise this year, it has been predicted.

Commenting on the recent Council of Mortgage Lenders (CML) figures showing a drop in lending in April, Ray Boulger, technical director of brokerage John Charcol, said he was not surprised the body has not increased its estimates for gross lending this year from £145 billion.

However, he said, the net prediction should be altered from the minus £25 billion forecast, as there have been some positive signals of late.

Predicting better times ahead, Mr Boulger added: "What we will see over the next months is the rate of decline in house prices will slow down and stabilisation in the third quarter."

Nationwide's latest house price survey indicated the sort of slowing decline in prices Mr Boulger mentioned, with April seeing a 0.4 per cent decline, compared to 0.9 per cent in March.